ODYSSEY PICTURES CORP, 10-K, 2000-11-20

ODYSSEY PICTURES CORP
10-K, 2000-11-20
MOTION PICTURE & VIDEO TAPE PRODUCTION

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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-K
(Mark One)

/x/ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 (FEE REQUIRED)

For the fiscal year ended June 30, 2000

/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)

For the transition period from _________ to _________

Commission file number 0-18954

Odyssey Pictures Corporation
-----------------------------------------------------
(Exact name of registrant as specified in its charter)

Nevada 95-4269048
------------------------------- ----------------------
(State or other jurisdiction of I.R.S. Employer
incorporation or organization) Identification Number)

1601 Elm Street, Dallas, Texas 75201, Suite 4000
------------------------------------------------
(Address of principal executive offices)

Registrant's telephone number, including area code: (214) 720-1622

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $.01
par value.

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [x] No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this form 10-K or any amendment to this
Form 10-K.

The aggregate market value of the voting stock held by non-affiliates of
the Registrant as of September 25, 2000 was approximately $18,166,047 (based on
the mean between the closing bid and asked prices of the Common Stock on such
date), which value, solely for the purposes of this calculation, excludes shares
held by Registrant's officers and directors. Such exclusion should not be deemed
a determination by Registrant that all such individuals are, in fact, affiliates
of the Registrant.

As of September 25, 2000 there were outstanding 16,545,804 shares of
Odyssey Pictures Corporation's common stock, par value $.01 per share (the
"Common Stock").

<PAGE>

ODYSSEY PICTURES CORPORATION
Form 10-K Report for the Fiscal Year
Ended June 30, 2000

TABLE OF CONTENTS
Page

PART I

Item 1. Business........................................................ 1

Item 2. Properties...................................................... 9

Item 3. Legal Proceedings............................................... 10

Item 4. Submission of Matters to a Vote of Security Holders............. 13

PART II

Item 5. Market for Registrant's Common Stock and Related
Stockholder Matters............................................ 14

Item 6. Selected Financial Data......................................... 14

Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations............................ 15

Item 8. Financial Statements and Supplementary Data..................... 17

Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure............................ 17

PART III

Item 10. Directors and Executive Officers of the Registrant............. 17

Item 11. Executive Compensation......................................... 19

Item 12. Security Ownership of Certain Beneficial Owners
and Management................................................ 22

Item 13. Certain Relationships and Related Transactions................. 23

PART IV

Item 14. Exhibits, Financial Statement Schedules and
Reports on Form 8-K........................................... 25

Signature .............................................................. 29

<PAGE>
PART I

Item 1. Business
-----------------

(a) General Development of Business

Odyssey Pictures Corporation ("Odyssey" or the "Company"), formerly known
as Communications and Entertainment Corp., was formed in December 1989 as a
holding company. At such time, the Company had no material assets. In September
1990, Double Helix Films, Inc. ("Double Helix"), a producer of low budget films,
and Odyssey Entertainment Ltd. ("OEL"), an international film distribution
company, were merged with wholly-owned subsidiaries of the Company (the
"Mergers"). Subsequent to the Mergers, each of Double Helix and OEL became a
wholly-owned subsidiary of the Company. In June 1991, the Company sold Double
Helix and thereafter began to focus on the distribution of motion pictures in
overseas markets as its primary business.

A change in the entire Board of Directors of the Company (the "Board")
occurred on April 12, 1995 pursuant to the terms of a Settlement Agreement,
dated as of March 31, 1995 (the "Settlement Agreement"), by and among Robert
Hesse, Shane O'Neil, Lawrence I. Schneider, Henry N. Schneider, Robert E.
Miller, Jr., Russell T. Stern, Jr. (collectively, a group of shareholders
originally formed to effect a change in management control of the Company and
known as the "CECO Shareholders Committee"), the Company, OEL, Global
Intellicom, Inc., each of Jerry Silva, Robert Ferraro, N. Norman Muller, Thomas
W. Smith and David A. Mortman (constituting all the directors of the Company at
the time of the execution of the Settlement Agreement and hereinafter referred
to collectively as the "Former Directors"), and others.

As contemplated by the Settlement Agreement, on April 11, 1995, the Former
Directors increased the size of the Board from five to six directors and elected
Henry N. Schneider, a designee of the CECO Shareholders Committee, a new
director effective upon the closing of the Settlement Agreement. The closing of
the Settlement Agreement occurred on April 12, 1995 and, upon the closing, the
resignations of the Former Directors became effective. After the closing, Henry
N. Schneider, as sole remaining director of the Company, elected Lawrence I.
Schneider, Russell T. Stern, Jr., Patrick J. Haynes, III and Robert E. Miller,
Jr. as new directors of the Company. In addition to the change in the
composition of the Board, the Settlement Agreement provided for the settlement
of all outstanding litigation between the Company and the CECO Shareholders
Committee. The CECO Shareholders Committee disbanded upon the closing of the
Settlement Agreement. Effective September 8, 1995, each of Messrs. Haynes, Stern
and Henry N. Schneider resigned as directors of the Company and were replaced by
Stephen R. Greenwald and Ira N. Smith, each of whom was appointed to the Board
and, together with Lawrence Schneider, elected to executive management positions
to operate the business and affairs of the Company on a day-to-day basis.

On March 6, 1996, the Company declared a reverse one-for-six stock split of
its Common Stock (the "Reverse Split"), effective March 18, 1996. All share
amounts and per share prices reflected in this Report have been adjusted to give
effect to the Reverse Split.

Mr. Schneider resigned his executive position in September, 1997, and in March,
1998, the Board of Directors appointed Mr. Johan Schotte as Chief Executive
Officer and Chairman of the Board of the Company. At the same time, Mr. Pierre
Koshakji was appointed to the Board and elected as President of the Company. Mr.
Johan Schotte expanded the Board to include additional independent directors and
Messrs. Greenwald and Smith agreed to terminate their existing employment
agreements in exchange for revised employment and consulting agreements. In
connection with the change in management, an affiliate of Mr. Schotte purchased
convertible deferred compensation notes from former management and converted a
portion of these notes into 667,648 shares of the Company's common stock in
April, 1998. The balance of these notes were converted into 176,050 shares of
common stock in October, 1998. John Foster became interium President of the
Company in January, 2000, and succeeded Mr. Koshakji as full-time President of
the Company in July, 2000.

1
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During the early 1990s, the Company developed an excellent reputation in
overseas markets for the distribution of quality motion picture entertainment, a
reputation which the Company's management believes it continues to enjoy despite
its recent difficulties. However, due to the changes in management control and
disruptions in the continuity of the Company's business following the change in
control in 1995, the Company has been unable to sustain any substantial
activities in the international distribution of motion pictures.

Under the leadership of Mr. Schotte, the Company will seek to re-establish
its position as a significant distributor of quality motion pictures by
establishing relationships and strategic alliances with major film studios and
successful writers, directors and producers. The Company also intends to
establish a permanent presence in Europe through select joint-venture partners.
In this connection, the Company purchased the assets of Sweden-based Kimon
Mediabright KB ("Kimon") in August, 1998, consisting of a film library with
worldwide and/or Scandanavian distribution rights and Scandanavian video
distribution rights to certain Hallmark Entertainment products.

While continuing to develop and re-establish the Company's film
distribution business, new management's objective going forward is to
aggresively build a diverse, global media company independent in ownership from
the major film and music companies. Management will seek to establish a group of
domestic and international companies providing both content and distribution in
film, music, publishing, sports, merchandising and other multimedia outlets. See
"Business - Narrative Description of Business - Business Strategy."

(b) Financial Information About Industry Segments

Since the sale of its Double Helix subsidiary in 1991, the Company has been
engaged in only one industry segment and line of business, the international
distribution of motion pictures. See "Selected Financial Data."

Foreign Sales and Distribution Operations
-----------------------------------------

General.
--------

The foreign distribution of films involves two principal activities - the
acquisition of rights from the licensor or the seller, usually the producer of
the film, and the licensing of the distribution rights to subdistributors in
foreign markets. In general, the rights obtained from the producer relate to all
media, including theatrical distribution, video and all forms of television.
However, the licensing of rights to subdistributors may exclude certain
territories and/or media.

It is unlikely that subdistributors would bypass the Company and deal
directly with the licensors of film rights. Historically, independent licensors
of film rights prefer to deal with a single sales agent/distributor rather than
deal with various subdistributors in foreign markets. Consequently, even if a
particular subdistributor attempted to perform the function of the Company, it
is unlikely that the film's licensor would be willing to deal with such
subdistributor. Furthermore, with respect to any particular film, the Company
would typically enter into an exclusive distributorship arrangement, thereby
precluding others from competing with the Company with respect to that film.
Moreover, in certain circumstances, the Company may also provide a financing
function for the production of a film which a subdistributor would generally be
unable to provide. See "Terms of Distribution Agreements."

2
<PAGE>
Terms of Distribution Agreements. Foreign distribution is generally handled
by a distributor such as the Company which coordinates worldwide sales in all
territories and media. Overseas film sales companies rely on local
subdistributors to physically deliver the motion picture and related marketing
materials and to collect revenues from local exhibitors and other local
distributors of the film. Typically, the territorial rights for a specific
medium such as television exhibition are sold for a "cycle" of approximately
seven years, after which the rights become available for license for additional
cycles.

The film distribution business breaks down into two broad categories:

o Sales Agency Representation. As a sales agent, the Company would
undertake to represent and license a motion picture in all markets and
media on a best-efforts basis, with no guarantees or advances, for a
fee of 15-20%, and typically for a term ranging from seven to fifteen
years.

o Distribution. As a distributor, the Company may provide the producer
of the film a guarantee of a portion of the budget of the project.
This guarantee may be in the form of a bank commitment to the
producer, secured by license agreements with foreign licensees, which
is used by the producer to finance the production. Typically, a
distributor would receive a distribution fee of 25-35% over a term
ranging from 15 years to perpetuity. In addition, the distributor may
acquire a profit participation in the film project.

Once the rights to a picture are obtained either as sales agent or
distributor with minimum guarantee, the Company would then seek to license its
rights to subdistributors in the territories for which it has acquired
distribution rights. In general, the grant of rights to the subdistributors
includes all media other than satellite, although satellite is included in some
subdistributors' territories. The subdistributor in each territory generally
pays for its distribution rights with a down payment at the time the contract is
executed with the balance due upon delivery of the picture to the
subdistributor. (Delivery occurs upon the Company's acceptance of the master
negative and its obtaining access to the interpositive and certain other items
necessary for the distribution of the film). In certain instances, the
subdistributors' obligations for the payment due on delivery are secured by a
letter of credit. Sales take place primarily at three film markets - Cannes,
France in May; MIFED in Milan, Italy in October; and the American Film Market
("AFM") in Los Angeles in February.

In general, after financing (if any) is repaid, the Company applies the
distribution receipts from its subdistributors first to the payment of
commissions due to the Company, then to the recovery of certain distribution
expenses advanced by the Company, and third, to the extent not recouped as part
of the repayment of the financing, to the reimbursement of the Company for its
guarantee, if any, paid to the producer. Additional distribution receipts, if
any, are shared by the Company and the producer according to the percentages
negotiated in the agreement between the Company and the producer.

Independent Film Production and Product Acquisition
---------------------------------------------------

Overseas film distribution companies such as the Company primarily
represent independent producers of motion pictures (rather than motion picture
studios) in all overseas markets and all media, including theatrical release,
television and home video distribution, and cable or satellite-distributed
media.

<PAGE>
Producers seek to be independent producers of motion pictures for a variety
of reasons, including greater creative control of a project and potentially a
greater profit participation through the retention of the copyright or the
ability to sell the film directly in particular markets. Often, young, new
directors and producers have no choice but to independently produce their
projects, and the motion picture industry has a long history of "breakthrough"
films produced at very low cost by first time producers and directors which
subsequently achieve considerable revenues. The Company has generally obtained
its product from among these independently produced films rather than from major
motion picture studios which typically have their own in-house distribution
networks. Nevertheless, from time to time, the Company has entered into "split
rights" arrangements with studios to represent a film in the overseas market.

The Company's management seeks to identify attractive projects very early
in their development, either through relationships with producers, directors and
agents or through industry announcements of new productions. In addition, the
Company's acquisitions personnel attends festivals and film markets, such as the
Sundance Film Festival and the Cannes Film Festival, in order to locate new
product.

Business Strategy
-----------------

The Company's strategy is to capitalize on its reputation and the
experience of its management team to build a global media company independent in
ownership from the major film studios and music companies. The Company's new
Board of Directors and executive management intend to integrate the Company into
today's total entertainment and media environment. "Odyssey Media", or a name
more appropriate, will be established as the parent to a diversified group of
U.S. and international companies providing both content and distribution in
film, music, publishing, sports, merchandising and other multimedia outlets.

The value and growth of "Odyssey Media" is intended to be achieved
primarily through acquisition of, and joint ventures with, established private
and public media companies. Such companies may be attracted by the strategic
relations and access to business that the other Odyssey media companies may
provide; the international markets that Odyssey may participate in; and access
to the public markets for capital and exposure.

Such companies may be identified through the experience and the strong
international entertainment, sport, banking and private investment network
contacts that the executive management and Board of Directors possess. Targeted
companies would be acquired primarily through issuance of new equity capital,
stock swaps and other means.

The parent company will provide each company with strong corporate
governance policies, direction for its management, strategic planning guidance,
control and reporting systems, marketing assistance, cross promotion and other
promotional support, as well as with assistance with business and joint venture
development, merger and acquisition assistance, executive and management search
support, and other services. The emphasis will be to optimize each individual
company's success as well as the cross-success of the entire media company. The
proposed business strategy for each division of "Odyssey Media" is as follows:

Odyssey Pictures: The film production and distribution division will continue to
operate as Odyssey Pictures for the purpose of providing a presence in Hollywood
and New York and establishing a permanent presence in Europe through select
joint-venture partners. The foreign sales agency business unit of Odyssey will
be de-emphasized, since it would only be feasible as part of the Company's own
distribution network, which will be expanded as soon as new Odyssey properties
are ready for worldwide distribution. In order to insure a high quality regular
product flow, alliances will be sought with major film studios and successful
writers, directors and producers.

Odyssey Music: The music unit of Odyssey will be initiated from Europe through
exploitation and music publishing of the Techno/Dance music genre due to its low
investment cost versus high return, and will serve as a basis to penetrate the
U.S. market. This base will allow the launch of new acts via movie sound tracks.
A U.S. operation will be set up as soon as practicable.

4
<PAGE>
Odyssey Publishing: Publishing will encompass all print and electronic media
including multi-media and Internet services as well as the traditional products
and services associated with magazines and other publications. When finally
viable, Odyssey Publishing will leverage intellectual property from the other
media properties, for example, book and multi-media products derived from motion
pictures.

Odyssey Sports: Ownership and management of sport teams and entertainment events
will be pursued at the minor and major league levels as a means of providing
content and avenues of advertising, promotion, and access to business for the
entire media company and its clients. It will also be pursued as an opportunity
for ancillary revenues through venue management and merchandising. At present,
the Company owns a minority interest in a second division professional soccer
team located in Sacramento, California.

Odyssey Merchandising: Manufacturing, sourcing, and distribution of merchandise
will be pursued and grown by Odyssey as a natural business complement to all
other media companies as well as a stand-alone business unit.

Strategic Objectives
--------------------

To properly build Odyssey Media, the Company's Board and executive
management will seek to implement the following strategies:

- Create and implement strong corporate governance policies and the most
effective corporate infrastructure;

- Properly capitalize the Company and seek a NASDAQ listing;

- Acquire profitable media-related operations that will contribute to
the Company's near-term and long term earnings;

- Leverage connections between investors and projects in Europe and the
United States; identify talent and management that will augment the
Company's abilities;

- Limit risk in the manner companies are acquired and investments are
financed;

- Maintain a cost consciousness in acquisition, financing, production
and distribution activities.

In March of 2000, the Company formed Odyssey Ventures Online Holding S.A.,
a Luxembourg corporation ("Odyssey Online"), for the purpose of making
investments in various technology-related entities. Odyssey Online's strategy is
to invest and co-invest with venture capital and internet management groups,
with the interntion of developing products and services related to electronic
commerce, content and the distribution thereof. See "Recent Acquisitions" below
for a description of investments made by Odyssey Online.

Recent Acquisitions
-------------------

Since the formation of Odyssey Online in March, 2000, the Company has made
the following investments: (i)an investment of $500,000 for a 6.25% equity
interest in PurchasePooling.com, Inc., a web-based demand aggregating service
developed to enable government entities and businesses to realize significant
cost savings by combining their purchasing power on large-ticket capital
equipment, as well as other goods and services; (ii) an investment of $136,668
for a 25% equity interest in Webtelemarketing.com, a web-site based company
specializing in online recruiting by linking the supply and demand sides of the
employment industry; (iii)an investment of $25,000 for a 1% equity interest in

5
<PAGE>
Exchange Enterprises, Inc., a privately-held company that has developed a
patent-pending internet cash card that allows consumers to purchase products and
services online without the use of credit cards or bank accounts. In September,
2000, Odyssey Online sold 30% of its investment in Purchase Pooling to Edge
Technology Group, Inc. (OTC Bulletin Board: EDGE) in return for 264,000 shares
of the company.

In April, 1999, the Company purchased an option with the right of first
refusal to be the exclusive worldwide distributor of a motion picture entitled
"HARA." The film is an action-packed semi-biographical martial arts love story
and is expected to start pre-production in January, 2001. Management of the
Company owns an indirect 50% equity interest, through its affiliated companies,
in Red Sun Productions, Inc., the production company which owns all rights to
the film "HARA."

In August, 1998, the Company completed the acquisition of the assets of
Sweden-based Kimon Mediabright KB ("Kimon"), valued at $4,500,000, in exchange
for 4,500,000 shares of the Company's subordinated convertible Preferred Stock,
Series B, having a value for conversion purposes of $1.00 per share. Kimon will
have the right to convert to Odyssey common stock between June 30, 2000 and
December 31, 2000 on a dollar-for-dollar basis based on the price of the
Company's common stock at the time of conversion. Kimon assets purchased consist
of a film library with worldwide and/or Scandanavian distribution rights and
Scandanavian video distribution rights to certain Hallmark Entertainment
products.

In connection with the change of control in March, 1998, the Company
acquired an 18% equity interest in each of two corporations affiliated with Mr.
Schotte, one of which is the owner of the Albuquerque Geckos, a second division
professional soccer team in New Mexico (subsequently transferred to Sacramento),
and the other of which is a media production company in Luxembourg. The Company
issued one-year notes in the aggregate amount of $450,000 in consideration of
the purchase of the equity interests in these companies. (In June, 1999, the
Company satisfied $135,000 of these notes, and the accrued interest thereon of
$27,225, by the issuance of 348,721 shares of the Company's restricted common
stock valued at $.465 per share). The Company's equity interest in the entity
which owns the professional soccer team has been diluted by half, or to 9%, as a
result of a capital increase/call in which the Company did not participate.

Sales of Library Films
----------------------

On January 2, 1996, the Company entered into an agreement with Regency
International Pictures, B.V. ("Regency"), the Company's joint venture partner,
to sell the Company's interest in the related joint ventures through which it
held approximately 50% ownership interests in four theatrical motion pictures,
entitled "Switch", "Q & A," "Guilty by Suspicion" and "This Boy's Life".
Pursuant to the agreement with Regency, the Company received $1,000,000 on
January 23, 1996 and $500,000 on February 14, 1996, in exchange for all of the
Company's interests in the joint ventures. In addition, the Company retained a
contingent interest in certain receivables, not to exceed $212,500, and a
contingent interest in future revenues from the pictures.

On August 29, 1996, the Company entered into an agreement with Kinnevik
Media Properties, Ltd. ("Kinnevik"), pursuant to which the Company agreed to
grant to Kinnevik subdistribution rights in, and to sell to Kinnevik other
distribution rights to, certain films in the Company's film library. In exchange
for these rights, the Company received a total cash consideration of $1,075,000,
payable $500,000 on closing, $275,000 six months after closing, and $300,000
eighteen months after closing. In addition, the Company retained a continuing
right to receive revenues from certain of the films, valued by management at a
minimum of approximately $150,000. As part of the transaction, the Company
granted 100,000 stock options to Kinnevik, exercisable over a three year period
at the bid price of the Company's common stock in effect on August 5, 1996
($.625). The transaction with Kinnevik closed on October 7, 1996.

6
<PAGE>
Recent Financings
-----------------

In August and October of 1995, the Company concluded a private placement
pursuant to which it issued unsecured promissory notes to unaffiliated investors
in the aggregate amount of $312,500. The notes had a maturity date of one year
and accrued interest at the rate of 12% per annum. A total of 6.25 units were
sold at a purchase price of $50,000 per unit. In addition, warrants were issued
to the purchasers at the rate of 4,167 warrants for each unit sold, or a total
of 26,042 warrants (on a post Reverse Split basis). Each warrant certificate
entitled the holder thereof to purchase one share of common stock at an exercise
price of either $2.83 per share (the August warrants) or $2.37 per share (the
October warrants) over a three year period commencing one year after the closing
of the private placement. After paying expenses and commissions of $42,500, the
Company received net proceeds of $270,000 from the private placement. The notes
issued in the private placement were due to be paid by the Company upon their
respective due dates on August 28 and October 3, 1996.

The Notes and interest were not repaid as scheduled. The Company proposed
that Noteholders either defer maturity of their notes and exchange existing
warrants for shares, or cancel the notes and warrants in their entirety in
exchange for a greater number of shares. The Company offered to register any
shares issued in exchange for the notes. On August 12, 1997, the date the
registration became effective, a total of $262,500 of notes were exchanged for
595,455 shares of registered stock. The remaining notes for $50,000 (held by a
single investor) have not been paid and are in default.

In September, 1996, the Company entered into an agreement with an
unaffiliated third party for the purchase of 1,000,000 shares of the Company's
common stock (and an additional 1,000,000 warrants) in consideration of
$750,000. Following a dispute between the parties concerning the satisfaction of
certain conditions to closing, the parties reached a settlement in June, 1997,
pursuant to which the investor purchased 66,667 shares of common stock of the
Company for $50,000, or $.75 per share.

In September, 1996, the Company reached an agreement with Paramount
Pictures, pursuant to which Paramount would cancel the Company's contractual
guarantee of $2.7 million in full, in exchange for which the Company agreed to
(i) relinquish all further distribution rights to "Wuthering Heights"; (ii)
assign to Paramount all of its rights in any outstanding distribution agreements
for the film, and any receivables to be generated therefrom; (iii) guarantee
that Paramount would collect a total of $500,000 in sales revenue from existing
distribution agreements no later than January 15, 1997. Existing license
agreements yielded approximately $420,000 in net revenues prior to January 15,
1997 (of which the Company would have been entitled to retain approximately 20%
thereof in commissions). The Company paid $250,000 in net revenues to Paramount
and intends to negotiate with Paramount regarding the timing of the remaining
$250,000 payment.

In January, 1997, prior counsel to the Company agreed to exchange a
promissory note in the face amount of $70,000 for 120,000 shares of the
Company's common stock.

In February, 1997, the Company completed the sale of 500,000 shares of
common stock and 500,000 common stock purchase warrants to four offshore
European investors for an aggregate consideration of $375,000. The warrants were
exercisable over a three year period (expiring February 25, 2000) at an exercise
price of $1.06 per share. One of the investors was Johan Schotte, who was
subsequently elected as CEO of the Company in March, 1998. Upon the expiration
date, all of the warrants were extended for an additional seven-year period
(through February 25, 2007) at the same exercise price of $1.06 per share.

In April, 1997, Stephen R. Greenwald, Lawrence I. Schneider and Robert
Miller, Jr., all directors of the Company, made loans to the company in the
amounts of $50,000, $25,000 and $25,000, respectively. Each loan was payable on
demand and accrued interest at the rate of 2 points over prime per annum. The
notes were secured by a collateral assignment of the Company's 300,000 note
receivable from Kinnevik. In consideration of making the loans, the lenders
received five-year warrants to purchase shares of common stock of the Company,
exercisable at $1.00 per share. Messrs. Schneider and Miller each received

7
<PAGE>
25,000 warrants and Mr. Greenwald received 50,000 warrants as consideration for
making the loans to the Company. In addition, two independent unaffiliated third
parties made additional $25,000 loans to the Company in June and August, 1997 on
the same terms and conditions as the loans made by Mr. Greenwald, Schneider and
Miller. In May, 1998, the loans of Mr. Schneider and one of the unaffiliated
parties were paid from the proceeds of the Kinnevik receivable. The remaining
lenders agreed to a rollover of their loans (aggregating $100,000) against a
second Kinnevik receivable and, in consideration, received an additional 50,000
warrants in the aggregate, exercisable at $1.00 per share over a three year
period. In September, 1998, all but $25,000 of these loans were repaid from the
proceeds of the Kinnevik receivable. The remaining lender, Robert E. Miller,
Jr., a director of the Company, agreed to a rollover of his $25,000 loan on an
unsecured basis for an additional six month period with interest at the rate of
10% per annum. Thereafter, Mr. Miller agreed to a further six-month extension
(through September, 1999) in consideration of an increase in the interest rate
on the loan to 12% per annum, the issuance of an additional 12,500 common stock
purchase warrants at $1.00 per share, and an extension of the expiration date on
all warrants issued in connection with his loan to the Company to the year 2004.

In September, 1997, the Company and Kinnevik Media Properties, Ltd.
executed an agreement pursuant to which Kinnevik agreed to purchase 500,000
shares of convertible, redeemable preferred stock of the Company, par value
$1.00 per share, for an aggregate purchase price of $500,000. Kinnevik agreed to
purchase the first $250,000 of preferred stock at the closing, an additional
$125,000 of preferred stock 90 days after closing, and the final $125,000 of
preferred stock 270 days (subsequently extended to 360 days) after closing. The
preferred stock would bear interest at the rate of 10% per annum which would be
paid in kind semi-annually by the issuance of additional shares of preferred
stock at a par value of $1.00 per share. Kinnevik would have the right for a
five-year period to convert the preferred stock into common stock of the Company
on a share-for-share basis. The Company would have the right to redeem the
preferred stock for $1.25 per share in the event the Company's common stock
traded at a price of $2.00 per share or more for a period of 20 consecutive
trading days. The Company agreed to help secure television distribution rights
for Kinnevik from third parties, and introduce various projects to Kinnevik from
time to time which may be of interest to Kinnevik. In the event Kinnevik
acquires any rights as a result of any introductions made by the Company, the
parties agree to mutually determine the value of such services and to redeem
shares of the preferred stock at $1.00 per share based on the aggregate value of
the services so determined.

The Company received $150,000 in funding from the Augustine Fund, L.P. in
July, 1998. In exchange for the financing, the Augustine Fund received a zero
coupon $150,000 convertible note as well as up to 150,000 transferable warrants,
exercisable at $1.60 per share for a three year period. The note was converted
into 300,000 restricted shares of the Company's common stock in March, 2000 at a
price of $.50 per share. Augustine and certain Augustine associated parties were
also issued a total of 45,000 shares of restricted common stock in connection
with the original transaction, and an additional 72,500 shares of restricted
common stock were issued to a finder in connection with the conversion of the
outstanding note.

In August, 1998, three unaffiliated investors loaned 4,000,000 Belgian
Francs (approximately $100,000) and received one year convertible notes with
interest at 10% per annum (the notes are convertible at a 15% discount to the
market price).

In September 1998 an unaffiliated third party loaned $25,000 to the Company
and received a six-month note with interest at 10% per annum. Thereafter, the
lender agreed to a six-month extension on the note (through September, 1999) in
consideration of an increase in the interest rate on the loan to 12% per annum,
and the issuance of 12,500 common stock purchase warrants at $1.00 per share,
exercisable through the year 2004.

In November 1998, the Company issued 200,000 common shares to an
unaffiliated party in exchange for $88,000 of barter credits.

8
<PAGE>
In December 1998, (i) an unaffiliated party purchased 625,000 common shares
at $.30 per share for a total purchase price of $187,500 (see "Certain
Relationships and Related Transactions"); and (ii) counsel to the Company
converted $40,000 of accrued legal fees into 100,000 shares of common stock of
the Company.

During the period between April, 1999 and September, 1999, the Company
completed four private placements to offshore investors, the first of which was
completed for 575,000 shares of common stock at a purchase price of $.30 per
share (resulting in gross proceeds to the Company of $172,500), and the latter
three of which were completed for an aggregate of 1,600,000 shares of common
stock at a purchase of $.40 per share (resulting in gross proceeds to the
Company of $400,000).

During the period between September, 1999 and October, 2000, the Company
completed two series of private placements to offshore investors, the first of
which was completed for an aggregate of 3,000,000 shares of common stock at a
purchase price of $.40 per share (resulting in gross proceeds to the Company of
$1,200,000), and the second of which was completed for an aggregate of 960,000
shares of common stock at a purchase price of $1.00 per share (resulting in
gross proceeds to the Company of $960,000).

Competition
-----------

The entertainment industry generally, and the film industry in particular,
are highly competitive. The Company's competition includes the smaller
independent producers as well as major motion picture studios and music
companies. Many of the Company's competitors have financial and other resources
which are significantly greater than those available to the Company.

Operations
----------

The Company's operations have been greatly reduced as a result of the
restructuring of the Company by new management. The Company's principal office
is located in Dallas, Texas (see "Properties") and, as of September 25, 2000,
the Company had two full-time employees, consisting of Mr. Schotte and Mr. John
Foster, the CEO and President of the Company, respectively.

Tax Loss Carryforward
---------------------

The Company is entitled to the benefits of certain net operating loss
carryforwards to reduce its tax liability. The utilization by the Company of
such tax loss carryforwards is limited under applicable provisions of the
Internal Revenue Code of 1986, as amended, and the applicable regulations
promulgated thereunder. As of June 30, 2000, there were approximately
$32,334,304 in net operating loss carryforwards remaining to be used to reduce
tax liability. The utilization of approximately $4.9 million of these losses in
future periods will be limited to approximately $350,000 per year.

Item 2. Properties
-------------------

The Company presently conducts its operations out of leased premises at
1601 Elm Street, Dallas, Texas, consisting of approximately 2,500 square feet.
The premises are presently being made available to the Company as an
accommodation by a company affiliated with Mr. Johan Schotte, the CEO of the
Company. Rent expense for each of the fiscal years ended June 30, 2000, 1999 and
1998 was $17,649, $84,939 and $69,002, respectively. (Commencing in January of
2000, the Company has accrued rent expense at the rate of $1,000 per month for
the use of office space in Luxembourg which is owned by Media Trust, S.A, a
company affiliated with Mr. Schotte).

9
<PAGE>
Item 3. Legal Proceedings
--------------------------

On December 20, 1990, Hibbard Brown & Company, Inc. ("Hibbard Brown") filed
a complaint entitled Hibbard Brown & Company, Inc. v. Double Helix Films, Inc.,
Odyssey Entertainment Ltd. and Communications and Entertainment Corp. in the
Supreme Court of the State of New York, County of New York. The Complaint sought
payment of $300,000 under an agreement with the Company, Odyssey, Double Helix
and Hibbard Brown dated December 21, 1989 for certain investment banking
services allegedly performed in introducing Odyssey and Double Helix and
assisting them in consummation of the Mergers by which they became wholly-owned
subsidiaries of the Company. A counterclaim seeking recovery of $50,000 paid to
Hibbard Brown upon execution of the Agreement was asserted.

Hibbard Brown's motion for summary judgment was granted in October, 1991.
On January 30, 1992, the Company moved, by order to show cause, to renew and
thereupon deny, dismiss or stay Hibbard Brown's previously granted motion for
summary judgment on the ground that Hibbard Brown had intentionally concealed
the fact that it was an unauthorized foreign corporation transacting business in
New York. By Order dated March 2, 1992, the court granted the Company's motion
in part by renewing the action and staying judgment pending Hibbard Brown's
qualification in New York. On October 29, 1992, Hibbard Brown moved for an order
vacating the stay of judgment, a declaration that it was now an authorized
foreign corporation and reinstatement of the summary judgment granted in
October, 1991 or, in the alternative, to rehear its motion for summary judgment
on the original papers and grant judgment in its favor.

On January 29, 1993, Double Helix, Odyssey and the Company cross-moved for
an order granting reargument and/or renewal of Hibbard Brown's motion for
summary judgment and consolidating the litigation with an action that the
Company had brought against Hibbard Brown (described below), or staying the
issuance, entry and execution of judgment pending the resolution and trial of
the Company's action against Hibbard Brown.

On March 26, 1993, the court issued a Decision and Order vacating the stay
of entry of the $300,000 judgment against the Company and granting the Company's
cross-motion for a stay of execution pending the determination of the Company's
action against Hibbard Brown. The Company's cross-motions for reargument and
renewal and consolidation were denied.

By Decision and Order dated June 18, 1993, the court affirmed the stay of
execution of the judgment, but required the Company to obtain a bond to secure
the stay. The Company obtained a non-collateral bond.

On March 5, 1992, the Company instituted an action entitled Communications
and Entertainment Corp. v. Hibbard Brown & Company in the Supreme Court, New
York County, for the return of 150,000 shares of Common Stock previously issued
on the ground that Hibbard Brown failed to perform the required services.
Hibbard Brown counterclaimed for breach of contract.

In July 1993, after considerable pre-trial discovery, the Company and
Hibbard Brown moved for summary judgment. By Decision and Order dated August 11,
1993, the court denied both motions. Both parties appealed. On March 3, 1994,
the appellate court affirmed the denial of summary judgment.

On or about October 14, 1994, Hibbard Brown filed a voluntary petition for
relief under Chapter 11, Title 11 of the United States Code with the United
States Bankruptcy Court, Southern District of New York. Consequently, the
Company's action against Hibbard Brown has been automatically stayed. The
Company has filed a Proof of Claim. In January 1998 the U.S. Bankruptcy Court of
the Southern District of New York approved a final settlement of the bankruptcy
of Hibbard Brown.

On or about September 11, 1992, Joseph Duignan brought an action in the
Superior Court of New Jersey, Mercer County, entitled Joseph Duignan v. Double
Helix Films Limited Partnership No. 1, L.P., Double Helix Films, Inc., Cinecom
International Films, Film Gallery, Inc., Stan Wakefield, Jerry Silva, Arthur
Altarac and Anthony Tavone (MER-L-4262-92). Jerry Silva, the only defendant who

10
<PAGE>
was served, is former Vice Chairman of the Board of Directors of the Company.
Mr. Duignan claims that he invested $75,000 to acquire a partnership interest in
Double Helix Films Limited Partnership No. 1 and that Mr. Silva forged or caused
to be forged his signature on a Subscription Agreement dated July 28, 1986. Mr.
Duignan seeks to recover compensatory damages, including but not limited to, his
alleged $75,000 investment, punitive damages and attorney's fees. Mr. Silva has
answered the complaint and has demanded that the Company indemnify him against
any expenses, judgments, and amounts paid in settlement of the action. The
Company contends that it is not required to indemnify Mr. Silva because he
breached his fiduciary duties to the Company.

In The Private Lessons Partnership V. Carnegie Film Group, Inc., Monogram
Pictures Corp., Filmways Entertainment Corp., ATC, Inc., Krishna Shah, Lonnie
Romati, Gerald Muller, Jerry Minsky and Does 1-100 (California Superior Court,
Los Angeles County, Case No. BC091840), the plaintiff asserted claims for breach
of oral contract, fraud in the inducement and fraudulent conveyance against Mr.
Shah, seeking damages in the amount of $315,000, plus further unspecified
compensatory damages and punitive damages. In August 1995, Mr. Shah filed a
cross-complaint against the Company, Double Helix Films and Norman Muller for
indemnification, apportionment of fault and declaratory relief. In addition to
compensatory damages, he seeks punitive and exemplary damages, emotional
distress damages and attorney's fees. The Company has answered the
cross-complaint.

On or about May 15, 1995, Credit Lyonnais Bank Nederland N.V. and Cinecom
Entertainment Group, Inc. filed a Complaint in the Superior Court for the State
of California, County of Los Angeles, captioned Credit Lyonnais Bank Nederland
N.V. and Cinecom Entertainment Group, Inc. v. Odyssey Distributors, Ltd. and
Does 1 through 100 (No. BC 127790). They allege that Odyssey Distributors, Ltd.
(a subsidiary of the Company) collected but failed to remit to them assigned
distribution proceeds in the amount of $566,283.33 from the foreign distribution
of "Aunt Julia and the Scriptwriter" and "The Handmaid's Tale." The Complaint
alleges claims for breach of contract and breach of fiduciary duty and demands
damages in excess of $566,283, attorney's fees, an accounting, a temporary
restraining order and a preliminary injunction. In June 1995, the Court denied
plaintiffs an attachment and stayed the action pending arbitration in New York.
In September, 1996, the Court dismissed the Complaint. In December, 1996, the
Company settled the outstanding litigation with Generale Bank ("Generale")
(formerly known as Credit Lyonnais Bank Nederland N.V.) and Cinecom
Entertainment Group Inc. Pursuant to the settlement agreement, the Company
agreed to pay to Generale the sum of $275,000 in complete settlement of the
claim, payable $25,000 upon execution of the settlement agreement, $25,000 on
each of June 30 and December 31 in the years 1997, 1998 and 1999, and $100,000
on June 30, 2000. The Company and Generale later agreed upon a new payment
schedule as follows: $25,000 on or before October 15, 1997 (payment was made);
$30,000 on each of April 15, 1998, June 30, 1998, December 31, 1998, June 30,
1999, and December 31, 1999; and $100,000 on June 30, 2000. The Company is in
default of this payment schedule. The consequences of not curing a default is
the entry of a confession of judgment already executed by the Company for the
amount of $275,000. This confession of Judgment is against Odyssey Distributors,
Ltd., a wholly owned but non-operating subsidiary of the Company.

In August 1995, G.P. Productions, Inc. ("GP") and Greenwich Subject Films,
Inc. ("Greenwich") commenced an action entitled G.P. Productions, Inc. and
Greenwich Studios, Inc. v. Double Helix Films, Inc., Communications and
Entertainment, Inc., Krishna Shaw, Gerald Muller and Norman Muller in the United
States District Court, Southern District of Florida (Case No. 95-1188). Mr.
Muller has demanded that the Company indemnify him against any expenses,
judgments and amounts paid in settlement of the action. The Company contends
that, by virtue of Mr. Muller's breaches of fiduciary duty and violation of his
obligations to the Company, it is not required to provide indemnification.

GP and Greenwich allege that they are the exclusive owners of the films
"The Gallery" and "South Beach". They assert claims for copyright infringement,
unfair competition, breach of contract, accounting, conversion, civil theft,
conspiracy and fraudulent conveyance. The Complaint demands a recall of the
films, an attachment, preliminary and permanent injunctive relief, an

11
<PAGE>
accounting, and unspecified compensatory, punitive and treble damages. The
Company's motion to transfer venue of the action was granted in November, 1995,
and the case was transferred to the United States District Court for the
Southern District of New York. There has been no activity in this matter since
the transfer of venue in 1995.

In October, 1995, Canon Financial Services filed a Complaint in the
Superior Court of New Jersey entitled Canon Financial Services, Inc. v.
Communications and Entertainment Corp. The plaintiff is claiming that it is due
$47,499.83, plus damages, pursuant to a lease agreement. The Company has filed
an Answer in this action and plaintiff's motion for summary judgment has been
denied by the Court. No trial date has yet been set in this matter.

In December, 1995, Robert F. Ferraro, a former director of the Company,
brought an action against the Company in the Supreme Court of the State of New
York, New York County. The action was brought on a promissory note in the amount
of $25,000 and plaintiff obtained a judgment on a summary judgment motion. The
plaintiff has not yet moved to enforce the judgment and the Company is
considering whether or not it has a claim for indemnification against prior
management in connection with the issuance of the note.

In March, 1996, an action was filed against the Company in Los Angeles
Municipal Court by Judy Hart, in which the plaintiff claims that she is due
$17,920 pursuant to a promissory note. The Company has filed a cross-claim
seeking offsets against the amount due and other damages. On May 21, 1998, a
default judgment was entered on behalf of plaintiff in the amount of $22,261.
Subsequently, plaintiff filed a motion to include attorneys fees and costs in
the aggregate amount of approximately $17,000. The Company is attempting to
reach a settlement with plaintiff.

In March, 1996, a class action complaint was filed against the Company
entitled Dennis Blewitt v. Norman Muller, Jerry Minsky, Dorian Industries, Inc.
and Communications and Entertainment Corp. The complaint seeks damages in
connection with the Company's treatment in its financial statements of the
disposition of its subsidiary, Double Helix Films, Inc. in June, 1991. The
complaint seeks unspecified damages on behalf of all persons who purchased
shares of the Company's common stock from and after June, 1992. A second action,
alleging substantially similar grounds, was filed in December 1996 in Federal
Court in the United States District Court for the Southern District of
California under the caption heading "Diane Pfannebecker v. Norman Muller,
Communications and Entertainment Corp., Jay Behling, Jeffrey S. Konvitz, Tom
Smith, Jerry Silva, David Mortman, Price Waterhouse & Co., Todman & Co., and
Tenato Tomacruz." Following the filing of the second action, the first action
was dismissed by stipulation in May 1997. The Company filed a motion to dismiss
the complaint in the second action and after a hearing on the motion in July,
1997, the Court dismissed the federal securities law claims as being time-barred
by the applicable statute of limitations, and dismissed the state securities law
claims for lack of subject matter jurisdiction. The lower court's dismissal of
this action was upheld on appeal by the Ninth Circuit. The case was refiled in
California state court in August 1998. The Court granted motions to dismiss two
of the complaints filed by the Plaintiff, whereupon a third complaint was filed.
More recently, a fourth amended complaint has been filed adding claims that the
defendants, including the Company, violated provisions of the California
Securities Laws. There is no trial date set in this matter. In a related action,
Thomas Smith and Norman Muller, former directors of the Company and
co-defendants in the Pfannebecker matter, filed an action against the Company in
the Los Angeles Superior Court seeking indemnification from the Company in
connection with their status as defendants in the Pfannebecker matter. The
Company intends to defend this action on the grounds that Messrs. Smith and
Muller committed wrongful acts as directors of the Company and failed to comply
with various obligations to the Company.

In December, 1997, the Directors Guild of America ("DGA") obtained an
arbitration award against Down Range Productions, Inc., a wholly owned
subsidiary of Odyssey ("Down Range"), on behalf of Kahn Brothers Pictures fso
Michael Kahn, Charles Skouras, and Scott C. Harris. Down Range was ordered to
pay Kahn Brothers Pictures the total sum of $155,041; Charles Skouras the sum of
$32,360; and Scott C. Harris the total sum of $8,868; plus interest at 18% per
annum on each of these amounts from April 1, 1997. Down Range was also ordered

12
<PAGE>
to pay the DGA $2,500. Down Range was also ordered to assign to the DGA all of
Down Range's right, title and interest in the motion picture "Down Range,"
including the screenplay for the motion picture, and Down Range was enjoined
from licensing the motion picture or the screenplay to any third party other
than the DGA. Down Range was also ordered to pay the arbitrator $2,250.

Kahn Brothers Pictures fso Michael Kahn also filed a claim against Down
Range Productions, Inc. and the Company with the Writers Guild of America West
(WGA) for unpaid writing services on "Down Range." That claim was settled by the
current management for the amount of $15,000 in July 1998.

The Screen Actors Guild ("SAG") has also asserted that there are amounts
owing to several actors arising out of "Down Range." In September, 1999, SAG
obtained an arbitration award against Down Range for a total amount of $96,183,
inclusive of salaries to the actors, pension and health contributions and late
fees. Down Range was also ordered to pay $200 to the arbitrator. Additionally,
there were two actors, Corbin Bernsen and Jeff Fahey, who had pay-or-play
contracts. The outcome of these contracts and the actors' claims have not been
resolved.

In April, 1998, an action was commenced against the Company by Siegel &
Gale, a provider of brochure materials, seeking payment of $48,695, plus costs,
related to work done by Siegel & Gale for the Company. The Company settled this
matter in October, 1999 for the amount of $25,000.

Mr. Ian Jessel entered into a three year employment agreement with the
Company, commencing November 9, 1998 and continuing through November 9, 2001.
Mr. Jessel's responsibilities included management of the Company's Motion
Picture & Television Division. Mr Jessel's compensation was set at a rate equal
to $300,000 per annum for the first year, $350,000 per annum for the second
year, and $400,000 per annum for the third year. The agreement also provided for
a yearly bonus based upon the net profits of the film division and the Company.
The Company paid the sum of $50,000 to Mr. Jessel in fiscal 1999 and deferred
payment of the balance of the compensation due to him. In June, 1999, Mr. Jessel
notified the Company that he was suspending services to the Company for failure
to pay his compensation on a timely basis. The Company believes it was justified
in deferring certain payments due to Mr. Jessel. Mr. Jessel commenced an action
against the Company in November, 1999 in the Los Angeles Superior Court, seeking
the salary and other benefits he claims he is entitled to under his three-year
employment agreement. The Company intends to vigorously defend the action on
several grounds, including Mr. Jessel's breach of his obligations under the
agreement. Discovery is ongoing in this matter and a trial date has been set for
April 30, 2001.

Dennis Morgan commenced an action against the Company in December, 1999 in
the Los Angeles Superior Court alleging that he was promised a position as head
of a music division to be established by the Company and that such oral
agreement was intended to be confirmed in writing but never was. Mr. Morgan
brought claims against the Company and others for the purported breach of an
oral agreement, purported breach of an implied agreement, fraud and fraudulent
conveyances. The Company has served written discovery and is awaiting responses
to interrogatories and the production of documents. The Company contends that
there was no employment relationship with, nor any monetary commitments to, Mr.
Morgan, and that it committed no breach or wrongdoing. No trial date has been
set in this matter.

Item 4. Submission of Matters to a Vote of Security Holders.
-------------------------------------------------------------

No matters were submitted to a vote of security holders during the fourth
quarter of the fiscal year covered by this Report.

13
<PAGE>
PART II

Item 5. Market for Registrant's Common Stock and Related Stockholder Matters.
-----------------------------------------------------------------------------

The following table sets forth the range of high and low bid information
for the Common Stock of the Company as reported by the Nasdaq Stock Market, Inc.
("Nasdaq") on a quarterly basis for each of the two preceding fiscal years. On
May 1, 1996, Nasdaq notified the Company that its shares of Common Stock were
being deleted from Nasdaq's SmallCap Market, effective May 2, 1996, because the
Company did not maintain a combined capital and surplus of $1,000,000, as
required by Section 1(c)(3) of Schedule D of the NASD By-Laws. Since May 2,
1996, the Company's shares have traded in the over-the-counter market on the OTC
Bulletin Board. The Company's Common Stock trades under the symbol OPIX.

No dividends have been declared or paid with respect to the Common Stock.

The bid quotations represent inter-dealer prices and do not include retail
mark-ups, mark-downs or commissions and may not necessarily represent actual
transactions.

Common Stock
------------
Fiscal 1999
-----------
First Quarter $.94 $ .37
Second Quarter .70 .26
Third Quarter .66 .30
Fourth Quarter .51 .25

Fiscal 2000 High Low
----------- ---- ---
First Quarter $ .69 $ .49
Second Quarter 1.11 .45
Third Quarter 1.19 .75
Fourth Quarter 1.55 .94

As of September 25, 2000, there were approximately 5,542 record holders of
the Company's Common Stock.

Item 6. Selected Financial Data (in thousands, except per share data).
----------------------------------------------------------------------

The following table sets forth the selected financial data for the Company
and should be read in conjunction with the Consolidated Financial Statements and
Notes thereto, and with Management's Discussion and Analysis of Financial
Condition and Results of Operations which appear elsewhere in this report.

14
<PAGE>

For the Years Ended June 30,
----------------------------------------------
2000 1999 1998 1997 1996
Income Statement Data

Revenues......................................... $146 $288 $ 42 $141 $1,011
Income(loss) from continuing operations.......... (1,208) (1,388) (1,119) 69 (4,960)
Income(loss)from discontinued operations......... -- -- -- -- --

Net income (loss)................................ (1,208) (1,388) (1,119) 69 (4,960)

Per Share Data*

Income(loss) from continuing operations.......... (.11) (.22) (.25) .02 (2.17)
Income(loss) from discontinued operations........ -- -- -- -- --
Net income (loss)................................ (.11) (.22) (.25) .02 (2.17)
Cash dividends................................... -- -- -- -- --
Weighted average shares.......................... 11,093 6,459 4,403 2,294 2,284

Balance Sheet Data

Film costs....................................... 4,095 4,378 110 120 1,001
Total assets..................................... 5,936 5,439 675 740 2,448
Indebtedness..................................... 2,869 1,192 1,079 962 562
Shareholders' equity............................. 3,067 2,161 (2,083) (2,226) (2,749)
</TABLE>

------------------------------------
Per share data and weighted average shares for all periods have been restated to
reflect the effect of a one-for-six reverse stock split in March 1996.

Item 7. Management's Discussion and Analysis of Financial Condition
and Results of Operation.
--------------------------------------------------------------------

Results of Operations

Years Ended June 30, 2000 and 1999

Net loss for the year ended June 30, 2000 was due mainly to the fact that
the Company did not release any new films. Revenues for the twelve months ended
June 30, 2000 decreased to $146,844 compared to $288,430 for the twelve months
ended June 30, 1999. No new films became available for delivery during either
period, although the company is in post production for one film project recently
acquired.

Costs related to the revenues decreased to $140,580 for the twelve months
ended June 30, 2000 as compared to $261,050 for the twelve months ended June 30,
1999. The relative costs are primarily related to acquisition costs associated
with a feature film in post production and the exploiting of the Kimon library
and Hallmark assets.

Selling, general and administrative expenses decreased by $145,936 to
$1,136,617 for the twelve month period ended June 30, 2000 from $ 1,282,553 for
the comparable period ending June 30, 1999. This decrease is primarily due to
decreases in personnel, operations overheads and related expenses.

15
<PAGE>

There was no other income recognized in the twelve-month period ended June
30, 2000 and June 30, 1999.

Since the change in management control in March of 1998, new management has
undertaken several steps to reverse unfavorable results. The company embarked
on, and still is in progress with, a recapitalization program with positive
results. The Company purchased a feature film, in post production, acquired an
equity interest in another company in addition to its acquisitions of the
twelve-month period ended June 30, 1999. The Company has also engaged new
managerial staff to further assist in its future performance.

Years Ended June 30, 1999 and 1998

Net loss for the year ended June 30, 1999 was due to the fact that the
Company did not release any new films. Revenues for the twelve months ended June
30, 1999 increased to $288,430 compared to $42,630 for the twelve months ended
June 30, 1998. No new films became available for delivery during either period.

Costs related to revenues increased to $261,050 for the twelve months ended
June 30, 1999 as compared to $20,019 for the twelve months ended June 30, 1998.
The increase is primarily related to costs associated with exploiting the Kimon
and Hallmark assets.

Selling, general and administrative expenses increased by $209,419 to
$1,282,553 for the twelve-month period ended June 30, 1999 from $1,073,134 for
the comparable period ending June 30, 1998. The increase is primarily due to
increases in personnel and related expenses.

There was no other income recognized in the twelve-month period ended June
30, 1999 and June 30, 1998.

Since the change in management control in March, 1998, new management has
embarked on a program to reverse the unfavorable results by taking steps to
recapitalize the Company, purchasing film assets, and by acquiring equity
interests in two corporations, one of which is the owner of a professional
soccer team, and the other of which is a media production company.

Liquidity and Capital Resources

The Company's continued existence is dependent upon its ability to resolve
its liquidity problems. The company must achieve and sustain a profitable level
of operations with positive cash flows and must continue to obtain financing
adequate to meet its ongoing operation requirements. These factors raise
substantial doubt about the Company's ability to continue as a going concern.

At June 30, 2000, the Company held approximately $31,214 of cash.

In the past fiscal year, management has taken steps to fund the Company's
operations primarily through private placements of the Company's common stock
with offshore investors.

16
<PAGE>

Item 8. Financial Statements and Supplementary Data.
-----------------------------------------------------

The response to this Item is submitted as a separate section of this report
commencing on page F-1.

Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure.
--------------------------------------------------------

Reference is made to the Company's Reports on Form 8-K, dated September 24,
1997, and February 13, 1998, with respect to a change in accountants for the
Company.

PART III

Item 10. Directors and Executive Officers of the Registrant.
------------------------------------------------------------

The directors and executive officers of the Company are as follows:

Name Age Position
---- --- --------
Johan Schotte 39 Chairman of the Board
&Chief Executive Officer

John Foster 47 Director, President

Patrick Speeckaert 53 Director

Jean-Marie Carrara 42 Director

Pierre Koshakji 38 Director, Treasurer

Set forth below is information regarding the business experience of the
current Directors and executive officers of the Company.

Johan Schotte is Founder and Chairman of Media Trust S.A. and Entertainment
Education Enterprises Corporation. Mr. Schotte has an extensive background in
banking and management, and holds an M.B.A. degree from the University of Dallas
in Irving, Texas. Before joining Odyssey in 1998, he served as Managing Director
of Rocket Pictures, an international film production and distribution company,
for whom he produced the satirical comedy "Cannes Man" in 1996. Mr. Schotte has
served as Chairman and CEO of the Company since March, 1998.

John Foster for more than the past five years has been an independent financial
consultant, investment analyst and investment banker, specializing in turnaround
situations and management restructuring in specific industries such as
technology, insurance and the entertainment and communications industry. He has
extensive background in information systems and data processing, and is
presently a consultant and investment advisor in determining strategies of
financing and investments in motion picture projects for investors, distributors
and producers. Mr. Foster served as interim President of the Company from
January, 2000 through June 2000, and is currently serving as President of the
Company.

17
<PAGE>

Patrick Speeckaert for more than the past five years has served as Managing
Director of Morrow & Co., Inc. in New York City. Morrow & Co., Inc. is a leading
company specializing in advising international corporations with respect to
issues involving corporate governance, shareholder relations and solicitations.

Jean-Marie Carrara is an international corporate strategist and technology
consultant. His areas of expertise include management of decision information
and data transmission safety and expertise in various technologies in the
telecommunications, textiles and recycling industries. Mr. Carrara serves as an
expert to the International Chamber of Commerce and continues to publish, teach,
and lecture at the university level in France. He holds a doctorate degree in
pharmacy, advanced degrees in biology, biochemistry and hematology, and advanced
degrees in management and finance.

Pierre R. Koshakji is currently the CEO and a Director of Edge Technolgy Group,
Inc. (OTC Bulleting Board: EDGE), a company which produces and markets CD-ROM
internet-related instructional sports products and is actively engaged in the
research and development of new complementary technologies. He is also
co-founder, and former President and director of, Entertainment Education
Enterprises Corporation (E3 Corporation), an international sports,
entertainment, and investment group. E3 Corporation has offices in Dallas,
Luxembourg and Los Angeles and has a professional affiliation with the Lamar
Hunt group of companies, Unity Hunt. Prior to E3 Corporation, Mr. Koshakji
served as Director of Business Development with Unity Hunt/Hunt Sports
Enterprises where he evaluated, negotiated, and implemented targeted
acquisitions and projects. He played a development role in establishing major
league soccer (MLS) and in establishing the two Hunt MLS teams in Columbus, Ohio
and in Kansas City, Missouri, and served as Senior Vice-President of Marketing
on the Las Vegas domed Stadium project as well as marketing consultant to the
San Francisco Giants new ball park at China Basin. Other positions and titles
Mr. Koshakji has held during his professional career include Deputy Executive
Director of the 1994 World Cup, Dallas Venue, including the responsibility of
liaison with the European Broadcast Union and International Broadcast Center,
the position of Director at KMPG Management Consulting in the country of Kuwait,
and electrical engineer at Chrysler Technologies Airborne Systems. Mr. Koshakji
graduated from Vanderbilt University BSEE with honors and received his Masters
of Business Administration at Southern Methodist University. Mr. Koshakji served
as President of the Company from March, 1998 through February, 2000.

Meetings and Committees of the Board of Directors

For the fiscal year ended June 30, 2000, there were six meetings and/or
written consents in lieu of meetings of the Board of Directors. All Directors
attended or consented to in excess of 75% of the meetings (and consents in lieu
of meetings) of the Board of Directors during said fiscal year. The Board of
Directors does not presently have any standing nominating, audit or compensation
committees, the customary functions of such committees being performed by the
entire Board of Directors.

Compliance with Section 16(a) of the Securities Exchange Act of 1934

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires
the Company's officers and directors, and persons who own more than 10% of a
registered class of the Company's equity securities, to file reports of
ownership and changes in ownership with the Securities and Exchange Commission
(the "Commission"). Officers, directors and greater than 10% stockholders are
required by the Commission's regulations to furnish the Company with copies of
all section 16(a) forms they file. To the Company's knowledge, based solely on a
review of the copies of reports furnished to the Company during the fiscal year
ended June 30, 2000, the Company's officers, directors and greater than 10%
stockholders complied with all filing requirements under section 16(a) except
that Messrs. Carrara and Foster did not file Form 3 Reports.

18
<PAGE>

Item 11. Executive Compensation
-------------------------------

The following table sets forth, for the fiscal years indicated, all
compensation awarded to, earned by or paid to the chief executive officer of the
Company, the four most highly compensated executive officers who were executive
officers as of June 30, 2000, and other significant employees for whom inclusion
in the following table would be required but for the fact that such employees
were not executive officers of the Company at the end of the most recently
completed fiscal year:

Summary Compensation Table

Annual Compensation Long-Term
-------------------------------- Securities
Name and Fiscal Other Annual Underlying All Other
Position Year Salary Bonus Compensation Options Compensation
-------- ---- ------ ----- ------------ ------- ------------

Johan Schotte 2000 6,860 -- -- -- 161,140(1)
Chief Executive 1999 29,050 -- -- -- 138,950(1)
Officer; Chariman 1998 5,000 -- -- -- 43,000(1)

Pierre Koshakji 2000 -- -- -- -- 114,000(1)
President 1999 36,750 -- -- -- 131,250(1)
1998 5,000 -- -- -- 43,000(1)

John Foster
Interim President 2000 49,250 -- -- -- 12,312

</TABLE>

(1) Represents deferred compensation which accrued during the fiscal years
indicated. Mr.Schotte received $$181,950 in the fiscal year ended June 30,
2000 in respect of the deferred salary for the prior two fiscal years. Mr.
Koshakji received $135,310 in the fiscal year ended June 30, 2000 in
respect of a portion of the deferred salary for the prior two fiscal
years. See "Compensation Arrangements, Termination of Employment and
Change-in-Control Arrangements" for a more detailed explanation of the
terms of the compensation agreements between the Company and its executive
officers.

19
<PAGE>

Options/Stock Appreciation Rights

The following table provides information with respect to stock options and
stock appreciation rights ("SARs") granted to the named executive officers
during the fiscal year ended June 30, 2000.

Individual Grants(1)
----------------------------------------
% of Total
Number of Options Potential Realized Value at
Securities Granted to Exercise Assumed Annual Rates of
Underlying Employees Price Stock Price Appreciation
Options in Fiscal Per Expiration For Option Terms
Granted Year Share Date 5% 10%
------- ---- ----- ---- -- ---

None (1)

---------------------------
(1)The foregoing table does not include 500,000 warrants held by an affiliate of
Mr. Schotte which were extended in February, 2000 for an additional seven-year
period at the original exercise price of $1.06 per share. See "Certain
Relationships and Related Transactions."

Aggregated Option/SAR Exercises and Fiscal Year-End Options/SAR Value Table

<S> <C> <C> <C> <C> <C>
Number of Securities
Underlying Unexercised Value of Unexercised
Options at Year End In-the-Money Options
------------------- ----------------------
Shares
Acquired Value
Name On Exercise Realized Exercisable Unexercisable Exercisable
---- ----------- -------- ---------- ------------- -----------
Unexercisable
-------------

Johan Schotte(1) __ __ 103,385 __ $ 49,624 __

Pierre Koshakji(1) __ __ 103,385 __ $ 49,624 __

</TABLE>

(1) The chart does not include 5,000 stock options for Mr.Schotte, and 1,350
stock options for Mr. Koshakji, in each case issued in connection with
personal loans made to the Company. See "Certain Relationships and Related
Transactions." The table also does not include warrants held by affiliates
of Mr.Schotte. See "Security Ownership of Certain Beneficial Owners and
Management."

Director Compensation

The Company does not have any standard arrangements pursuant to which
directors of the Company are compensated for services provided as a director.
All directors are entitled to reimbursement for expenses reasonably incurred in
attending Board of Directors' meetings.

20
<PAGE>

Compensation Agreements, Termination of Employment and Change-in-Control
Arrangements

In March, 1998, Mr. Stephen Greenwald stepped down as CEO of the Company in
connection with a change in control of the Company. In connection with such
change of management, Mr. Greenwald terminated his existing employment agreement
and entered into a new compensation arrangement with the Company. Mr. Greenwald
agreed to serve as managing director of the Company through December 31, 1999,
and was to receive the sum of $130,000 during such period in varying monthly
payments. In addition, in consideration of terminating his existing employment
agreement, Mr. Greenwald was to receive an additional $130,000, also payable in
varying monthly amounts during the two-year period ending December 31, 1999. In
September, 1999, Mr. Greenwald resigned as a Director of the Company to pursue
other interests. He also agreed to settle all outstanding payments due to him
under his employment agreement, and to resign as a Managing Director of the
Company, in consideration of receiving a settlement payment of $100,000,
together with 200,000 shares of restricted common stock.

In connection with the change in control of the Company in March, 1998, Mr.
Ira Smith, a former officer and director of the Company (through S.F.H.
Associates, Inc.), agreed to serve in a consulting capacity to the Company for
the period from March, 1998 through December 31, 1999. Pursuant to such
consulting agreement, Mr. Smith's consulting company was entitled to receive the
sum of $160,000 during such period, payable at the rate of $8,000 per month,
commencing May, 1998. In addition, in consideration of terminating his then
existing employment agreement with the Company, Mr. Smith was entitled to
receive an additional $100,000, payable in varying monthly amounts during the
term of the consulting agreement. Following a default by the Company under the
consulting agreement, Mr. Smith agreed to terminate his consulting agreement
with the Company in consideration of receiving a settlement payment of $100,000,
together with 200,000 shares of restricted common stock.

In connection with the change of control in the Company in March, 1998, Johan
Schotte entered into a two-year employment agreement with the Company,
commencing as of January 1, 1998 and continuing through December 31, 1999. Mr.
Schotte's compensation was fixed at $150,000 per year during such period. Mr.
Koshakji also entered into a two-year employment agreement with the Company at
the rate of $150,000 per annum. The agreement with Mr. Schotte was extended for
an additional period of one year at the rate of $250,000 per year, and the
agreement with Mr. Koshakji was extended for a period of six months at the rate
of $5,000 per month. As of June 30, 2000, a substantial portion of the
compensation due to Messrs. Smith and Koshakji under their respective agreements
was past due for the period from January 1, 1998 through the fiscal year ended
June 30, 2000. Mr. Koshakji resigned his position as President of the Company on
January 1, 2000 and served as a consultant to the Company through June 30, 2000.

In connection with the change of management, an affiliate of Mr. Schotte
purchased a total of $230,000 of deferred compensation notes from Messrs.
Greenwald and Smith, and converted approximately 75% of these notes into 667,648
shares of the Company's common stock in April, 1998. The balance of these notes
were converted into 176,050 shares of common stock in October, 1998.

In November, 1998, the Board of Directors of the Company authorized the
following bonus incentive compensation package for each of Messrs. Schotte and
Koshakji:

(I) Warrants: 2% of the Company's total outstanding stock each
year, beginning with the fiscal year commencing July 1, 1998,
and each year thereafter. Warrants shall be priced at the
average bid price for the 10 consecutive trading days
preceding the issue date each year, and exercisable at any
time following the issue date. Messrs. Schotte and Koshakji
were each issued 103,385 warrants as of July 1, 1998 at an
exercise price of $.74 per share. Messrs. Schotte and Koshakji
each waived their right to receive a warrant bonus for the
fiscal year commencing July 1, 1999.

21
<PAGE>

(II) Performance Bonus: Each year beginning with the fiscal year
ending June 30, 1999, and each year thereafter, if the
Company's gross revenues increase by 20% or more over the
gross revenues of the preceding year, the performance bonus
shall be the greater of either 1% of the revenue differential
or 2.5% of the EBITDA. No performance bonuses have been
awarded under this plan.

(III) Market Cap Bonus: At the end of each fiscal year, beginning
with the fiscal year commencing July 1, 1998, if the Company's
market capitalization increases from the preceding year based
on the average closing price for the 30 previous consecutive
trading days, the market capitalization bonus shall equal 1%
of the differential. Messrs. Schotte and Koshakji each waived
their right to receive a market cap bonus for the fiscal year
commencing July 1, 1999.

John Foster served as interim President of the Company from January, 2000
through June, 2000 at the rate of $9,850 per month. In July, 2000, he became
President of the Company and agreed to a one-year extension of his agreement at
the rate of $12,000 per month.

Compensation Committee Report and Compensation Committee Interlocks
and Insider Participation

Executive officer compensation is determined by the entire Board of
Directors. The Board has not appointed or designated a separate compensation
committee to determine or set executive compensation. The Board's executive
compensation policy is intended to attract and retain key executives, compensate
them at appropriate levels and provide them with both cash and equity incentives
to enhance the Company's value for all of its stockholders.

Item 12. Security Ownership of Certain Beneficial Owners and Management.
------------------------------------------------------------------------

The following table sets forth information concerning ownership of common
stock, as of September 25, 2000, by each person known by the Company to be the
beneficial owner of more than 5% of the common stock, each director and
executive officer, and by all directors and executive officers of the Company as
a group.

Name of Shares Percentage of
Beneficial Owner Status Beneficially Owned Class
---------------- ------ ------------------ --------------

Johan Schotte CEO and 233,385(1) 1.4%
Chairman

Lecoutere Finance S.A. ___ 2,012,734(2) 11.8%

Patrick Speeckaert Director 2,000 Less than 1%

John Foster Director, 2,000 Less than 1%
President

Jean-Marie Carrara Director 2,000 Less than 1%

Pierre Koshakji Director, 104,735(3) Less than 1%
Treasurer
All Executive
Officers &
Directors As
A Group (5 Persons) ___ 344,120(4) 2.1%

22
<PAGE>
(1) Includes presently exercisable options to purchase 108,385 shares of common
stock; does not include 1,486,134 shares of common stock and 526,600 common
stock purchase warrants held by a corporate affiliate of Mr. Schotte,
Lecoutere Finance S.A.; also does not include 111,285 shares of common
stock and 2660 common stock purchase warrants held by E3 Capital, and
29,537 common stock purchase warrants held by Media Trust S.A., both
corporate affiliates of Mr. Schotte. (Mr. Schotte disclaims beneficial
ownership of all shares and warrants held by affiliated entities, although
based on Mr.Schotte's close business relationship with the other principal
shareholders of these entities, there exists the possibility that these
shareholders may act in concert with Mr. Schotte with respect to the voting
of these shares in the Company).
(2) Includes presently exercisable options to purchase 526,600 shares of common
stock. See note (1).
(3) Includes presently exercisable options to purchase 104,735 shares of common
stock.
(4) Includes presently exercisable options to purchase 213,120 shares of common
stock.

Item 13. Certain Relationships and Related Transactions.
-------------------------------------------------------

In April, 1997, Robert E. Miller, Jr.(who resigned as a Director during the
fiscal year ended June 30, 2000) made a loan to the Company in the amounts of
$25,000. The loan was payable on demand, accrued interest at the rate of 9.25%
per annum, and was secured by a collateral assignment of the Company's $300,000
receivable due from Kinnevik. See "Business-Sales of Distribution Rights." In
consideration of making the loan, the lender received a five-year warrant to
purchase 25,000 shares of common stock of the Company, exercisable at $1.00 per
share. Mr. Miller agreed to a rollover of his loan to be paid from the proceeds
of a second Kinnevik receivable due in September, 1998. In consideration of the
rollover, Mr. Miller received 12,500 warrants, exercisable over a five-year
period at $1.00 per share. Mr. Miller's loan was rolled over for a subsequent
six month period on an unsecured basis with interest at the rate of 10% per
annum. Mr. Miller thereafter agreed to another six-month rollover (through
September, 1999), in consideration of which he received an additional 12,500
warrants exercisable over a five-year period at $1.00 per share, an increase in
the interest rate on his loan to 12% per annum, and an extension on the
expiration date of all warrants issued in connection with his loan to the year
2004. In December, 1999, Mr. Miller converted his $25,000 loan into 57,876
shares of common stock of the Company at a conversion price of approximately
$.43 per share.

In June, 1998, the Company entered into the following related party
transactions with E3 Sports New Mexico, Inc., a company which is an affiliate of
Mr. Schotte and Mr. Koshakji and in which the Company holds a minority interest:
(i) the Company purchased a $25,000 sponsorship from the Albuquerque Geckos, the
professional soccer team owned by the affiliate; and (ii) the Board authorized
the Company to loan up to $100,000 to the affiliate, payable no later than July
15, 1999 with interest at 15% per annum (the loan is secured by 10,000 shares of
E3 Sports new Mexico, Inc.). The loan is currently outstanding.

In July, 1998, the Company entered into the following related party
transactions with Media Trust S.A., a company which is an affiliate of Mr.
Schotte and in which the Company holds a minority interest: (i) the Company
agreed to make a $2,500 loan to the affiliate, payable in one year with interest
at 15% per annum; (ii) the Company engaged the affiliate to introduce
prospective investors to the company, in exchange for which the affiliate will
receive 10% of any investments made in the Company by persons or entities
introduced by the affiliate, together with five-year warrants (100 warrants per
$1,000 invested) at an exercise price equal to the market price of the Company's
stock on the date of the investment. In connection with convertible loans made
to the Company in 1998 by Belgian investors in the aggregate amount of
approximately $100,000, and the purchase of 625,000 shares of common stock of
the Company by Lecoutere Finance, S.A. in December, 1998 (see below), a total of
29,540 five-year warrants have been issued to Media Trust, S.A. with exercise
prices ranging from $.38 per share to $.98 per share. The $2,500 loan to Media
Trust S.A. is currently outstanding.

23
<PAGE>

During the fiscal year ended June 30, 2000, Mr. Koshakji loaned the Company
approximately $2,500, with such loan bearing interest at the rate of 18% per
annum (the same interest rate being charged to Mr. Koshakji for such funds).

In April, 1999, the Company purchased a refundable option for $60,000 to be
the exclusive worldwide distributor of a motion picture entitled "HARA." The
film is an action martial arts love story and is expected to start
pre-production in January, 2001. Management of the Company owns an indirect 50%
equity interest in Red Sun Productions, Inc., a production company which owns
all rights to the film "HARA."

Commencing in January of 2000, the Company has accrued additional rent
expense at the rate of $1,000 per month for the use of office space in
Luxembourg which is owned by Media Trust, S.A, a company affiliated with Mr.
Schotte, the CEO and Chairman of the Company.

In February, 2000, the maturity date of 500,000 common stock purchase
warrants held by Lecoutere Finance S.A. (an affiliate of Mr. Schotte) was
extended for an additional seven-year period through February 25, 2007. The
warrants were originally issued to Mr. Schotte and other investors in February,
1997 in connection with a capital investment in the Company of $375,000. The
warrants were originally scheduled to expire on February 25, 2000. At the time
of the original investment, Mr. Schotte was not affiliated with the Company. The
warrants will continue to have the same exercise price of $1.06 per share.

24
<PAGE>
PART IV

Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K.
-------------------------------------------------------------------------

(a)(1) The response to this portion of Item 14 is submitted as a separate
section of this report commencing on page F-1.

(a)(2) See (a)(1) above.

(a)(3) Exhibits

3.1 Articles of Incorporation, as amended through June 30, 1995(1)

3.2 Amendments to Articles of Incorporation filed in March and June, 1996(8)

3.3 Amendment to Articles of Incorporation filed in January, 1997 (9)

3.4 By-laws(1)

4.1 Indenture between Odyssey and Continental Stock Transfer and Trust
Company ("Continental") dated as of July 15, 1987(1)

4.2 Form of Supplemental Indenture between Continental and the Company(1)

4.3 Form of Common Stock Certificate(1)

4.4 Form of options granted of officers, directors and 5% stockholders(2)

4.5 Form of Warrant issued to purchasers parties to the 1995 Private
Placement completed September 30, 1995(5)

4.6 Form of 12% Unsecured Promissory Note issued to purchasers parties
to the 1995 Private Placement completed September 30, 1995(5)

4.7 Form of Stock Option Agreement by and between the Company and officers
and directors of the Company,for stock options issued in April 1995(5)

4.8 Form of Common Stock Purchase Warrant by and between the Company and
officers, directors, employees and consultants of the Company for
warrants issued during the fiscal year ended June 30, 1996(8)

4.9 Common Stock Purchase Warrant, dated March 6, 1996, between the Company
and G & H Media, Ltd. (assignee of Stephen R. Greenwald)(7)

4.10 Common Stock Purchase Warrant, dated March 6, 1996, between the Company
and Lawrence I.Schneider(7)

4.11 Common Stock Purchase Warrant, dated March 6, 1996, between the Company
and Ira N. Smith(7)

4.12 Form of Common Stock Purchase Warrant by and between the Company and
officers, directors,employees and consultants of the Company for
warrants issued during the fiscal year ended June 30, 1997(9)

4.13 Preferred Stock Certificate, Series A, issued to Kinnevik Media
Properties, Ltd. in September, 1997 (10)

4.14 Convertible Note issued to Augustine Fund L.P. in July, 1998 (12)

4.15 Preferred Stock Certificate, Series B, issued to Kimon, Inc.
in September, 1998 (10)

10.1 1989 Long Term Incentive Plan(1)

10.2 Agreement of Settlement and Release, dated October 2, 1995, by and
between Home Box Office,Inc. and Odyssey(5)

25
<PAGE>

10.3 Private Placement Memorandum used in connection with 1995 Private
Placement (the "1995 Private Placement Memorandum")(5)

10.4 Supplement to the 1995 Private Placement Memorandum(5)

10.5 Supplement No. 2 to the 1995 Private Placement Memorandum(5)

10.6 Supplement No. 3 to the 1995 Private Placement Memorandum(5)

10.7 Settlement Agreement, dated as of March 31, 1995, by and between the
Company, Odyssey, Global Intellicom, Inc., N. Norman Muller, Thomas
W. Smith, David Mortman, Robert Ferraro, the CECO Shareholders
Committee, Lawrence Schneider, Robert E. Miller, Henry Schneider,
Robert Hesse,Shane O'Neil, Patrick Haynes, Russell T. Stern, Jr.,
Thurston Group, Inc., The Insight Fund,L.P. and Lois Muller(3)

10.8 Memorandum of Agreement, dated as of August 24, 1995 between the
Company and Multipix Communications, Inc.(4)

10.9 Termination Agreement, dated as of January 2, 1996, between Regency
International Pictures, B.V. and Odyssey Distributors B.V.(6)

10.10 Employment Agreement dated October 1, 1995, between the Company and
Stephen R. Greenwald(6)

10.11 Employment Agreement dated October 1, 1995, between the Company
and Lawrence I. Schneider(6)

10.12 Employment Agreement dated October 1, 1995, between the Company
and Ira N. Smith (6)

10.13 Agreement, dated March 6, 1996, between Communications and Entertainment
Corp. and its wholly-owned subsidiary, Odyssey Distributors, Ltd.(7)

10.14 Severance and Consulting Agreement, dated March 26, 1996, between the
Company and Shane O'Neil,and related modifying agreement dated
March 28, 1996(7)

10.15 Management Agreement between the Company and Stephen R. Greenwald,
dated March 6, 1996,superseding the Employment Agreement dated
October 1, 1995(8)

10.16 Management Agreement between the Company and Lawrence I. Schneider,
dated March 6, 1996, superseding the Employment Agreement dated
October 1, 1995(8)

10.17 Management Agreement between the Company and Ira N. Smith, dated
March 6, 1996, superseding the Employment Agreement dated
October 1, 1995(8)

10.18 Addendum to Management Agreements of Messrs. Schneider, Greenwald
and Smith(8)

10.19 Joint Venture Letter between the Company and Film Bridge International,
Inc., dated March 11, 1996(8)

10.20 Lease for office premises at 1875 Century Park East, Suite 2130, Los
Angeles, California, dated May 9, 1996(8)

10.21 Agreement dated August 29, 1996, between the Company and Kinnevik
Media Properties, Ltd.(8)

10.22 Agreement dated September 6, 1996 between the Company and Mr. David
Somerstein(8)

26
<PAGE>

10.23 Settlement Agreement and Release between Paramount Pictures Corporation
and Odyssey Distributors , Ltd. (a wholly owned subsidiary of the
Company), and Guarantee agreement of the Company, each dated as of
September 26, 1996 (9)

10.24 Form of Settlement Agreement with Generale bank Nederland, N.V., dated
as of December 18, 1996 (9)

10.25 Stock Purchase Agreement between the Company and Kinnevik Media
Properties, Ltd., dated September 1997 (10)

10.26 Stock Purchase Agreement between the Company and Flanders Film S.A.
relating to purchase of minority stock interest in E3 Sports New
Mexico, Inc. and Media Trust S.A., and related promissory notes for
$135,000 and $315,000, dated March 2, 1998 (10)

10.27 Termination /Employment Agreement with Stephen R. Greenwald, dated
March 2, 1998 (10)

10.28 Termination Agreement with Ira Smith dated March 2, 1998 (10)

10.29 Consulting Agreement with S.F.H. Associates, Inc. for the services of
Ira Smith, dated March 2, 1998 (10)

10.30 Employment Agreement with Johan Schotte, dated March 2, 1998 (10)

10.31 Convertible Note issued to Augustine Fund, L.P. in July, 1998 (12)

10.32 Asset Purchase Agreement between the Company and Kimon Mediabright KB,
a Swedish limited partnership, dated July 14, 1998 (10)

10.33 Employment Agreement with Pierre Koshakji, dated March 2, 1998 (11)

10.34 Employment Agreement with Ian Jessel, dated December, 1998 (13)

10.35 Settlement Agreement with Stephen Greenwald, dated September, 1999(13)

21.1 Subsidiaries of the Registrant(3)

-----------------------------------------------
(1) Incorporated herein by reference to the Company's Registration Statement on
Form S-4, File No. 33-34627.

(2) Incorporated herein by reference to the Company's Registration Statement on
Form S-1, File No. 33-43371.

(3) Incorporated herein by reference to the Company's Current Report on Form
8-K filed April 12, 1995, File No. 0-18954.

(4) Incorporated herein by reference to the Company's Current Report on Form
8-K filed August 30, 1995, File No. 0-18954.

(5) Incorporated herein by reference to the Company's Annual Report on Form
10-K for the fiscal year ended June 30, 1995, File No. 0-18954.

(6) Incorporated herein by reference to the Company's Quarterly Report on Form
10-Q for the quarter ended December 31, 1995, File No. 0-18954.

(7) Incorporated herein by reference to the Company's Quarterly Report on Form
10-Q for the quarter ended March 31, 1996, File No. 0-18954.

(8) Incorporated herein by reference to the Company's Annual Report on Form
10-K for the Fiscal Year Ended June 30, 1996, File No. 0-18954.

<PAGE>

(9) Incorporated herein by reference to the Company's Registration Statement on
Form S-1, File No. 333-20701.

(10) Incorporated herein by reference to the Company's Annual Report on Form
10-K for the Fiscal Year Ended June 30, 1997, File No. 0-18954

(11) Incorporated herein by reference to Amendment No. 1 to the Company's Annual
Report on Form 10-K for the Fiscal Year Ended June 30, 1997, File No.
0-18954

(12) Incorporated herein by reference to the Company's Annual Report on Form
10-K for the Fiscal Year Ended June 30, 1998, File No. 0-18954

(13) Incorporated herein by reference to the Company's Annual Report on Form
10-K for the Fiscal Year Ended June 30, 1999, File No. 0-18954

(b) Reports on Form 8-K

No Reports on Form 8-K were filed by the Company during the last
quarter of the period covered by this Report.

(d) None.

28
<PAGE>

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

ODYSSEY PICTURES CORPORATION

Dated: November 17, 2000 By: /s/ Johan Schotte
-----------------------------
Johan Schotte,
CEO and Chairman

Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.

Signature Title Date

/s/ Johan Schotte CEO and Chairman 11/17/00
---------------------- (Principal Executive &
Johan Schotte Financial Officer)

/s/ John Foster Director, President 11/17/00
----------------------
John Foster

/s/ Jean-Marie Carrara Director 11/17/00
----------------------
Jean-Marie Carrara

/s/ Patrick Speeckaert Director 11/17/00
----------------------
Patrick Speeckaert

/s/ Pierre Koshakji Director 11/17/00
----------------------
Pierre Koshakji

29
<PAGE>